Toronto Stock Exchange Says Selective Disclosure Still A Problem

Senior Vice-President of Market Regulation John Carson, today delivered a tough message to listed companies on the dangers of selective disclosure. "The blunt fact is that retail investors are disadvantaged when institutional investors and analysts are given preferential access to company information. This violates the fundamental principles of fairness that support our market," Mr. Carson pointed out to an audience of over 250 executives gathered for the 12th annual Canadian Investor Relations Institute conference in Banff. Mr. Carson called on companies to make a concerted effort to expand on current disclosure practices by making the additional information given to professional investors accessible to a broader audience. He said that the Internet and other new delivery channels make this goal achievable. These channels include: Web sites - Make supporting data and background information available via the site. The TSE recently released electronic guidelines for listed companies which recommended this approach. Conference Calls - Permit both the media and investors to listen to information provided in conference calls with analysts. The TSE recently launched a pilot project with Salter New Media to broadcast quarterly earnings conference calls of TSE-listed companies over the Internet on Q1234.com. "At the TSE we're doing our part," said Mr. Carson. "It's up to listed companies to ensure that retail investors get access to the same information as investment professionals even if that information is not "material" as defined in TSE disclosure policies." Mr. Carson said the TSE is working with the Ontario Securities Commission to address problems of selective disclosure. The fully automated Toronto Stock Exchange consistently ranks as one of the world's top exchanges and is Canada's premier market for senior equities, accounting for approximately 90% of all equity trading in Canada. In 1998, more than 26 billion shares traded, worth more than CAD490 billion - about CAD2 billion a day in share transactions. With a proud 147-year history at the heart of the Canadian economy, the TSE continues to provide Canadian and international investors with a well-regulated, fair and accessible marketplace.